AMC Networks Inc. ("AMC Networks" or the "Company") (NASDAQ: AMCX)
today reported financial results for the third quarter ended
September 30, 2022.
Chief Executive Officer Christina
Spade said: "Our strong content engagement is driving
positive momentum throughout 2022. Our focus to transform to a
consumer-focused multi-platform premium content company is taking
hold with strong digital distribution growth. We have 11.1 million
paid subscribers as of the end of the third quarter, representing
44% growth from the prior year and streaming revenue growth of 41%.
Our ability to break through the competition with our
highly-engaging content, as we further reconstitute our revenue
mix, positions us well for long-term success and value
creation."
Operational Highlights:
- Expanding
distribution partnership with Roku with the addition of 11 FAST
channels programmed by AMC Networks
- Anne Rice’s
Interview with the Vampire premiered in October and is the biggest
new series in AMC+ history and the #1 new drama on ad-supported
cable in 2022; renewed for a second season
- Premiering Anne
Rice’s Mayfair Witches, the next series in the Anne Rice Immortal
Universe, on AMC+ and AMC on January 8, 2023
- Developing three
new series in The Walking Dead Universe:
- The Walking Dead:
Dead City, featuring Maggie and Negan in a post-apocalyptic
Manhattan led by Jeffery Dean Morgan and Lauren Cohan
- Norman Reedus-led,
Daryl Dixon series set in Paris
- The continuing
journey of Rick and Michonne, led by Andrew Lincoln and Danai
Gurira
- Expanded
distribution of the AMC+ premium streaming services in Australia,
New Zealand and Spain
Financial Highlights – Third Quarter
Ended September 30, 2022:
- Streaming
subscribers grew 44% from the prior year to 11.1 million
subscribers as of September 30, 2022
- Net revenues
decreased 16% from the prior year to $682 million, largely driven
by the timing of content licensing revenues, lower affiliate and
advertising revenues, and unfavorable foreign currency translation,
partly offset by streaming revenue growth of 41%
- Operating income
decreased 20% from the prior year to $151 million; Adjusted
Operating Income(1) decreased 14% to $194 million, due to lower
revenues, partly offset by lower content and marketing investments
and strategic cost discipline, with a margin of 28%
- Diluted EPS of
$1.94; Adjusted EPS(1) of $2.09
- Net cash provided
by operating activities of $19 million; Free Cash Flow(1) of $4
million
(1) |
See page 4 of this earnings release for a discussion of non-GAAP
financial measures used in this release. This discussion includes
the definition of Adjusted Operating Income, Adjusted EPS and Free
Cash Flow. |
|
|
Dollars in
thousands, except per share amounts |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2022 |
|
|
2021 |
|
|
Change |
|
|
2022 |
|
|
|
2021 |
|
|
Change |
Net Revenues |
$ |
681,843 |
|
$ |
810,766 |
|
|
(15.9 |
)% |
|
$ |
2,132,025 |
|
|
$ |
2,273,899 |
|
|
(6.2 |
)% |
Operating Income |
$ |
150,677 |
|
$ |
188,326 |
|
|
(20.0 |
)% |
|
$ |
478,557 |
|
|
$ |
426,290 |
|
|
12.3 |
% |
Adjusted Operating Income |
$ |
194,305 |
|
$ |
224,691 |
|
|
(13.5 |
)% |
|
$ |
601,031 |
|
|
$ |
713,307 |
|
|
(15.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per Share |
$ |
1.94 |
|
$ |
2.55 |
|
|
(23.9 |
)% |
|
$ |
6.23 |
|
|
$ |
5.39 |
|
|
15.6 |
% |
Adjusted Earnings Per Share |
$ |
2.09 |
|
$ |
2.68 |
|
|
(22.0 |
)% |
|
$ |
6.69 |
|
|
$ |
9.11 |
|
|
(26.6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash provided by (used in) operating activities |
$ |
19,417 |
|
$ |
(87,183 |
) |
|
122.3 |
% |
|
$ |
36,591 |
|
|
$ |
43,984 |
|
|
(16.8 |
)% |
Free
Cash Flow |
$ |
4,368 |
|
$ |
(101,297 |
) |
|
104.3 |
% |
|
$ |
(25,151 |
) |
|
$ |
(891 |
) |
|
n/m |
|
Segment Results:(dollars in thousands)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2022 |
|
|
|
2021 |
|
|
Change |
|
|
2022 |
|
|
|
2021 |
|
|
Change |
Net Revenues: |
|
|
|
|
|
|
|
|
|
|
|
Domestic Operations |
$ |
587,389 |
|
|
$ |
682,746 |
|
|
(14.0 |
)% |
|
$ |
1,814,034 |
|
|
$ |
1,895,730 |
|
|
(4.3 |
)% |
International and Other |
|
99,270 |
|
|
|
129,940 |
|
|
(23.6 |
)% |
|
|
334,892 |
|
|
|
389,384 |
|
|
(14.0 |
)% |
Inter-segment Eliminations |
|
(4,816 |
) |
|
|
(1,920 |
) |
|
(150.8 |
)% |
|
|
(16,901 |
) |
|
|
(11,215 |
) |
|
(50.7 |
)% |
Total
Net Revenues |
$ |
681,843 |
|
|
$ |
810,766 |
|
|
(15.9 |
)% |
|
$ |
2,132,025 |
|
|
$ |
2,273,899 |
|
|
(6.2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss): |
|
|
|
|
|
|
|
|
|
|
|
Domestic Operations |
$ |
186,609 |
|
|
$ |
213,299 |
|
|
(12.5 |
)% |
|
$ |
573,943 |
|
|
$ |
517,874 |
|
|
10.8 |
% |
International and Other |
|
8,291 |
|
|
|
15,564 |
|
|
(46.7 |
)% |
|
|
39,733 |
|
|
|
32,365 |
|
|
22.8 |
% |
Corporate / Inter-segment Eliminations |
|
(44,223 |
) |
|
|
(40,537 |
) |
|
(9.1 |
)% |
|
|
(135,119 |
) |
|
|
(123,949 |
) |
|
(9.0 |
)% |
Total
Operating Income |
$ |
150,677 |
|
|
$ |
188,326 |
|
|
(20.0 |
)% |
|
$ |
478,557 |
|
|
$ |
426,290 |
|
|
12.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Income (Loss): |
|
|
|
|
|
|
|
|
|
|
|
Domestic Operations |
$ |
206,701 |
|
|
$ |
231,076 |
|
|
(10.5 |
)% |
|
$ |
635,409 |
|
|
$ |
723,749 |
|
|
(12.2 |
)% |
International and Other |
|
13,310 |
|
|
|
22,109 |
|
|
(39.8 |
)% |
|
|
55,509 |
|
|
|
70,777 |
|
|
(21.6 |
)% |
Corporate / Inter-segment Eliminations |
|
(25,706 |
) |
|
|
(28,494 |
) |
|
9.8 |
% |
|
|
(89,887 |
) |
|
|
(81,219 |
) |
|
(10.7 |
)% |
Total
Adjusted Operating Income |
$ |
194,305 |
|
|
$ |
224,691 |
|
|
(13.5 |
)% |
|
$ |
601,031 |
|
|
$ |
713,307 |
|
|
(15.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic OperationsThird
Quarter Results:
- Domestic
Operations' revenues decreased 14% from the prior year to $587
million
- Distribution and
other revenues decreased 16% to $407 million
- Content
licensing revenues decreased 63% to $58 million due to the timing
and availability of deliveries in the quarter
- Subscription
revenues grew 8% due to increased streaming revenues primarily
driven by streaming subscriber growth and contractual affiliate
rate increases, partially offset by declines in the linear
subscriber universe
- Streaming
revenues increased 41% with quarter end total subscribers of 11.1
million
- Affiliate
revenues declined in the mid-single-digits due to basic subscriber
declines
- Advertising
revenues decreased 10% to $180 million due to lower linear ratings,
softer scatter and direct response markets and fewer original hours
in the third quarter, partially offset by digital and advanced
advertising revenue growth
- Operating income
decreased 13% to $187 million
- Adjusted
Operating Income, with a margin of 35%, decreased 11% to $207
million, reflecting revenue performance, partially offset by lower
programming and marketing investments for the quarter
International and OtherThird
Quarter Results:
- International
and Other revenues decreased 24% from the prior year to $99
million; excluding the impact of foreign currency translation, 16%
decrease
- Distribution and
other revenues decreased 22% to $82 million, primarily due to the
timing of productions at 25/7 Media and unfavorable foreign
currency translation at AMCNI; excluding the impact of foreign
currency translation, 15% decrease
- Advertising
revenues decreased 31% to $17 million, primarily due to the impact
of the planned wind-down of two channels in the U.K., the
unfavorable impact of foreign currency translation, and softer
ratings in the U.K.; excluding the impact of foreign currency
translation, 20% decrease
- Operating income
decreased 47% to $8 million
- Adjusted
Operating Income decreased 40% to $13 million, reflecting lower
revenue and the unfavorable impact of foreign currency translation;
excluding the impact of foreign currency translation, 36%
decrease
Other MattersStock Repurchase
Program & Outstanding Shares
As previously disclosed, the Company's Board of
Directors has authorized a program to repurchase up to $1.5 billion
of the Company’s outstanding shares of common stock. The Stock
Repurchase Program has no pre-established closing date and may be
suspended or discontinued at any time. During the quarter ended
September 30, 2022, the Company did not repurchase any shares.
As of September 30, 2022, the Company had $135 million of
authorization remaining for repurchase under the Stock Repurchase
Program.
As of October 28, 2022, the Company had
31,495,577 shares of Class A Common Stock and 11,484,408 shares of
Class B Common Stock outstanding.
Please see the Company’s Form 10-Q for the
period ended September 30, 2022, which will be filed later
today, for further details regarding the above matters.
Description of Non-GAAP
Measures
The Company defines Adjusted Operating Income
(Loss), which is a non-GAAP financial measure, as operating income
(loss) before share-based compensation expense or benefit,
depreciation and amortization, impairment and other charges
(including gains or losses on sales or dispositions of businesses),
restructuring and other related charges, cloud computing
amortization, and including the Company’s proportionate share of
adjusted operating income (loss) from majority-owned equity method
investees. From time to time, we may exclude the impact of certain
events, gains, losses, or other charges (such as significant legal
settlements) from AOI that affect our operating performance.
Because it is based upon operating income (loss), Adjusted
Operating Income (Loss) also excludes interest expense (including
cash interest expense) and other non-operating income and expense
items. The Company believes that the exclusion of share-based
compensation expense or benefit allows investors to better track
the performance of the various operating units of the business
without regard to the effect of the settlement of an obligation
that is not expected to be made in cash.
The Company believes that Adjusted Operating
Income (Loss) is an appropriate measure for evaluating the
operating performance of the business segments and the Company on a
consolidated basis. Adjusted Operating Income (Loss) and similar
measures with similar titles are common performance measures used
by investors, analysts, and peers to compare performance in the
industry.
Internally, the Company uses net revenues and
Adjusted Operating Income (Loss) measures as the most important
indicators of its business performance and evaluates management’s
effectiveness with specific reference to these indicators. Adjusted
Operating Income (Loss) should be viewed as a supplement to and not
a substitute for operating income (loss), net income (loss), and
other measures of performance presented in accordance with U.S.
generally accepted accounting principles ("GAAP"). Since Adjusted
Operating Income (Loss) is not a measure of performance calculated
in accordance with GAAP, this measure may not be comparable to
similar measures with similar titles used by other companies. For a
reconciliation of operating income (loss) to Adjusted Operating
Income (Loss), please see pages 7-8 of this release.
The Company defines Free Cash Flow, which is a
non-GAAP financial measure, as net cash provided by operating
activities less capital expenditures and cash distributions to
noncontrolling interests, all of which are reported in our
Consolidated Statement of Cash Flows. The Company believes the most
comparable GAAP financial measure of its liquidity is net cash
provided by operating activities. The Company believes that Free
Cash Flow is useful as an indicator of its overall liquidity, as
the amount of Free Cash Flow generated in any period is
representative of cash that is available for debt repayment,
investment, and other discretionary and non-discretionary cash
uses. The Company also believes that Free Cash Flow is one of
several benchmarks used by analysts and investors who follow the
industry for comparison of its liquidity with other companies in
the industry, although the Company’s measure of Free Cash Flow may
not be directly comparable to similar measures reported by other
companies. For a reconciliation of net cash provided by operating
activities to Free Cash Flow, please see page 9 of this
release.
The Company defines Adjusted Earnings per
Diluted Share (“Adjusted EPS”), which is a non-GAAP financial
measure, as earnings per diluted share excluding the following
items: amortization of acquisition-related intangible assets;
impairment and other charges (including gains or losses on sales or
dispositions of businesses); non-cash impairments of goodwill,
intangible and fixed assets; restructuring and other related
charges; and gains and losses related to the extinguishment of
debt; as well as the impact of taxes on the aforementioned items.
The Company believes the most comparable GAAP financial measure is
earnings per diluted share. The Company believes that Adjusted EPS
is one of several benchmarks used by analysts and investors who
follow the industry for comparison of its performance with other
companies in the industry, although the Company’s measure of
Adjusted EPS may not be directly comparable to similar measures
reported by other companies. For a reconciliation of earnings per
diluted share to Adjusted EPS, please see pages 10-11 of this
release.
Forward-Looking Statements
This earnings release may contain statements
that constitute forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These
statements are based on management's current expectations and are
subject to uncertainty and changes in circumstances. Investors are
cautioned that any such forward-looking statements are not
guarantees of future performance or results and involve risks and
uncertainties and that actual results or developments may differ
materially from those in the forward-looking statements as a result
of various factors, including financial community and rating agency
perceptions of the Company and its business, operations, financial
condition and the industries in which it operates and the factors
described in the Company’s filings with the Securities and Exchange
Commission, including the sections entitled "Risk Factors" and
"Management’s Discussion and Analysis of Financial Condition and
Results of Operations" contained therein. The Company disclaims any
obligation to update any forward-looking statements contained
herein.
Conference Call Information
AMC Networks will host a conference call today
at 8:30 a.m. ET to discuss its third quarter 2022 results. To
listen to the call, please visit investors.amcnetworks.com.
About AMC Networks Inc.
AMC Networks (Nasdaq: AMCX) is a global
entertainment company known for its popular and critically
acclaimed content. Its brands include targeted streaming services
AMC+, Acorn TV, Shudder, Sundance Now, ALLBLK and the anime-focused
HIDIVE streaming service, in addition to AMC, BBC AMERICA (operated
through a joint venture with BBC Studios), IFC, SundanceTV, WE tv,
IFC Films and RLJE Films. AMC Studios, the Company’s in-house
studio, production and distribution operation, is behind some of
the biggest titles and brands known to a global audience, including
The Walking Dead, the Anne Rice catalog and the Agatha Christie
library. The Company also operates AMC Networks International, its
international programming business, and 25/7 Media, its production
services business.
Contacts
Investor Relations |
|
Corporate Communications |
Nicholas Seibert (646)
740-5749 |
|
Georgia Juvelis (917)
542-6390 |
nicholas.seibert@amcnetworks.com |
|
georgia.juvelis@amcnetworks.com |
AMC NETWORKS
INC.CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share
amounts)(unaudited)
|
Three Months EndedSeptember 30, |
|
Nine Months EndedSeptember 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenues, net |
$ |
681,843 |
|
|
$ |
810,766 |
|
|
$ |
2,132,025 |
|
|
$ |
2,273,899 |
|
Operating expenses: |
|
|
|
|
|
|
|
Technical and operating (excluding depreciation and
amortization) |
|
293,459 |
|
|
|
378,264 |
|
|
|
903,468 |
|
|
|
997,677 |
|
Selling, general and administrative |
|
207,972 |
|
|
|
220,011 |
|
|
|
670,444 |
|
|
|
610,164 |
|
Depreciation and amortization |
|
29,735 |
|
|
|
23,411 |
|
|
|
79,556 |
|
|
|
71,261 |
|
Impairment and other charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
158,973 |
|
Restructuring and other related charges |
|
— |
|
|
|
754 |
|
|
|
— |
|
|
|
9,534 |
|
Total operating expenses |
|
531,166 |
|
|
|
622,440 |
|
|
|
1,653,468 |
|
|
|
1,847,609 |
|
Operating income |
|
150,677 |
|
|
|
188,326 |
|
|
|
478,557 |
|
|
|
426,290 |
|
Other
income (expense): |
|
|
|
|
|
|
|
Interest expense |
|
(34,308 |
) |
|
|
(31,413 |
) |
|
|
(97,085 |
) |
|
|
(97,674 |
) |
Interest income |
|
3,625 |
|
|
|
2,264 |
|
|
|
8,552 |
|
|
|
7,614 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(22,074 |
) |
Miscellaneous, net |
|
(1,546 |
) |
|
|
54 |
|
|
|
3,540 |
|
|
|
19,634 |
|
Total other expense |
|
(32,229 |
) |
|
|
(29,095 |
) |
|
|
(84,993 |
) |
|
|
(92,500 |
) |
Income from operations before income taxes |
|
118,448 |
|
|
|
159,231 |
|
|
|
393,564 |
|
|
|
333,790 |
|
Income tax expense |
|
(28,456 |
) |
|
|
(40,744 |
) |
|
|
(103,118 |
) |
|
|
(77,980 |
) |
Net
income including noncontrolling interests |
|
89,992 |
|
|
|
118,487 |
|
|
|
290,446 |
|
|
|
255,810 |
|
Net
income attributable to noncontrolling interests |
|
(5,326 |
) |
|
|
(7,836 |
) |
|
|
(18,163 |
) |
|
|
(22,253 |
) |
Net
income attributable to AMC Networks’ stockholders |
$ |
84,666 |
|
|
$ |
110,651 |
|
|
$ |
272,283 |
|
|
$ |
233,557 |
|
|
|
|
|
|
|
|
|
Net income per
share attributable to AMC Networks’ stockholders: |
|
|
|
|
Basic |
$ |
1.96 |
|
|
$ |
2.60 |
|
|
$ |
6.32 |
|
|
$ |
5.52 |
|
Diluted |
$ |
1.94 |
|
|
$ |
2.55 |
|
|
$ |
6.23 |
|
|
$ |
5.39 |
|
|
|
|
|
|
|
|
|
Weighted average common shares: |
|
|
|
|
|
|
|
Basic |
|
43,238 |
|
|
|
42,506 |
|
|
|
43,070 |
|
|
|
42,308 |
|
Diluted |
|
43,732 |
|
|
|
43,440 |
|
|
|
43,707 |
|
|
|
43,332 |
|
AMC NETWORKS
INC.SUPPLEMENTAL FINANCIAL DATA
(Dollars in
thousands)(Unaudited)
|
Three Months Ended September 30, 2022 |
|
Domestic Operations |
|
International and Other |
|
Corporate / Inter-segment Eliminations |
|
Consolidated |
Operating income (loss) |
$ |
186,609 |
|
$ |
8,291 |
|
$ |
(44,223 |
) |
|
$ |
150,677 |
Share-based compensation expenses |
|
3,155 |
|
|
537 |
|
|
3,358 |
|
|
|
7,050 |
Depreciation and amortization |
|
12,141 |
|
|
4,482 |
|
|
13,112 |
|
|
|
29,735 |
Restructuring and other related charges |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
Impairment and other charges |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
Cloud computing amortization |
|
5 |
|
|
— |
|
|
2,047 |
|
|
|
2,052 |
Majority owned equity investees AOI |
|
4,791 |
|
|
— |
|
|
— |
|
|
|
4,791 |
Adjusted operating income (loss) |
$ |
206,701 |
|
$ |
13,310 |
|
$ |
(25,706 |
) |
|
$ |
194,305 |
|
|
|
Three Months Ended September 30, 2021 |
|
Domestic Operations |
|
International and Other |
|
Corporate / Inter-segment Eliminations |
|
Consolidated |
Operating income (loss) |
$ |
213,299 |
|
|
$ |
15,564 |
|
$ |
(40,537 |
) |
|
$ |
188,326 |
Share-based compensation expenses |
|
4,174 |
|
|
|
545 |
|
|
4,736 |
|
|
|
9,455 |
Depreciation and amortization |
|
11,589 |
|
|
|
5,200 |
|
|
6,622 |
|
|
|
23,411 |
Restructuring and other related charges |
|
(135 |
) |
|
|
800 |
|
|
89 |
|
|
|
754 |
Impairment and other charges |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
Cloud computing amortization |
|
— |
|
|
|
— |
|
|
596 |
|
|
|
596 |
Majority owned equity investees AOI |
|
2,149 |
|
|
|
— |
|
|
— |
|
|
|
2,149 |
Adjusted operating income (loss) |
$ |
231,076 |
|
|
$ |
22,109 |
|
$ |
(28,494 |
) |
|
$ |
224,691 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMC NETWORKS
INC.SUPPLEMENTAL FINANCIAL DATA
(Dollars in
thousands)(Unaudited)
|
Nine Months Ended September 30, 2022 |
|
Domestic Operations |
|
International and Other |
|
Corporate / Inter-segment Eliminations |
|
Consolidated |
Operating income (loss) |
$ |
573,943 |
|
$ |
39,733 |
|
$ |
(135,119 |
) |
|
$ |
478,557 |
Share-based compensation expenses |
|
10,000 |
|
|
1,758 |
|
|
12,104 |
|
|
|
23,862 |
Depreciation and amortization |
|
37,716 |
|
|
14,018 |
|
|
27,822 |
|
|
|
79,556 |
Restructuring and other related charges |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
Impairment and other charges |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
Cloud computing amortization |
|
17 |
|
|
— |
|
|
5,306 |
|
|
|
5,323 |
Majority owned equity investees AOI |
|
13,733 |
|
|
— |
|
|
— |
|
|
|
13,733 |
Adjusted operating income (loss) |
$ |
635,409 |
|
$ |
55,509 |
|
$ |
(89,887 |
) |
|
$ |
601,031 |
|
|
|
Nine Months Ended September 30, 2021 |
|
Domestic Operations |
|
International and Other |
|
Corporate / Inter-segment Eliminations |
|
Consolidated |
Operating income (loss) |
$ |
517,874 |
|
$ |
32,365 |
|
$ |
(123,949 |
) |
|
$ |
426,290 |
Share-based compensation expenses |
|
17,105 |
|
|
2,689 |
|
|
19,369 |
|
|
|
39,163 |
Depreciation and amortization |
|
36,678 |
|
|
14,477 |
|
|
20,106 |
|
|
|
71,261 |
Restructuring and other related charges |
|
2,508 |
|
|
5,273 |
|
|
1,753 |
|
|
|
9,534 |
Impairment and other charges |
|
143,000 |
|
|
15,973 |
|
|
— |
|
|
|
158,973 |
Cloud computing amortization |
|
— |
|
|
— |
|
|
1,502 |
|
|
|
1,502 |
Majority owned equity investees AOI |
|
6,584 |
|
|
— |
|
|
— |
|
|
|
6,584 |
Adjusted operating income (loss) |
$ |
723,749 |
|
$ |
70,777 |
|
$ |
(81,219 |
) |
|
$ |
713,307 |
|
|
|
|
|
|
|
|
|
|
|
|
|
AMC NETWORKS
INC.SUPPLEMENTAL FINANCIAL DATA
(Dollars in thousands, except per share
amounts)(Unaudited)
Capitalization |
September 30, 2022 |
|
Cash and cash equivalents |
$ |
790,930 |
|
|
|
|
Credit facility debt (a) |
$ |
649,688 |
|
Senior notes (a) |
|
2,200,000 |
|
Total debt |
$ |
2,849,688 |
|
|
|
|
Net debt |
$ |
2,058,758 |
|
|
|
|
Finance leases |
|
23,807 |
|
Net debt and finance leases |
$ |
2,082,565 |
|
|
|
|
|
Twelve Months Ended September 30, 2022 |
|
Operating Income (GAAP) |
$ |
542,189 |
|
Share-based compensation expense |
|
32,624 |
|
Depreciation and amortization |
|
102,176 |
|
Impairment and other charges |
|
637 |
|
Restructuring and other related charges |
|
844 |
|
Cloud computing amortization |
|
6,227 |
|
Majority owned equity investees |
|
19,097 |
|
Adjusted Operating Income (Non-GAAP) |
$ |
703,794 |
|
|
|
|
Leverage ratio (b) |
|
3.0 |
x |
(a) |
Represents the aggregate principal amount of the debt. |
(b) |
Represents net debt and finance leases divided by Adjusted
Operating Income for the twelve months ended September 30, 2022.
This ratio differs from the calculation contained in the Company's
credit facility. No adjustments have been made for consolidated
entities that are not 100% owned. |
|
|
Free Cash
Flow |
Three Months EndedSeptember 30, |
|
Nine Months EndedSeptember 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net cash provided by operating activities |
$ |
19,417 |
|
|
$ |
(87,183 |
) |
|
$ |
36,591 |
|
|
$ |
43,984 |
|
Less: capital expenditures |
|
(11,956 |
) |
|
|
(11,120 |
) |
|
|
(33,510 |
) |
|
|
(29,969 |
) |
Less: distributions to noncontrolling interests |
|
(3,093 |
) |
|
|
(2,994 |
) |
|
|
(28,232 |
) |
|
|
(14,906 |
) |
Free cash flow |
$ |
4,368 |
|
|
$ |
(101,297 |
) |
|
$ |
(25,151 |
) |
|
$ |
(891 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMC NETWORKS
INC.SUPPLEMENTAL FINANCIAL DATA
(Dollars in thousands, except per share
amounts)(Unaudited)
Adjusted
Diluted Earnings Per Share |
|
Three Months Ended September 30, 2022 |
|
Income from operations before income taxes |
|
Income tax expense |
|
Net income attributable to noncontrolling interests |
|
Net income attributable to AMC Networks' stockholders |
|
Diluted EPS attributable to AMC Networks' stockholders |
Reported Results (GAAP) |
$ |
118,448 |
|
$ |
(28,456 |
) |
|
$ |
(5,326 |
) |
|
$ |
84,666 |
|
$ |
1.94 |
Adjustments: |
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets |
|
10,235 |
|
|
(2,016 |
) |
|
|
(1,680 |
) |
|
|
6,539 |
|
|
0.15 |
Impairment and other charges |
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
Restructuring and other related charges |
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
Loss on extinguishment of debt |
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
Adjusted Results (Non-GAAP) |
$ |
128,683 |
|
$ |
(30,472 |
) |
|
$ |
(7,006 |
) |
|
$ |
91,205 |
|
$ |
2.09 |
|
Three Months Ended September 30, 2021 |
|
Income from operations before income taxes |
|
Income tax expense |
|
Net income attributable to noncontrolling interests |
|
Net income attributable to AMC Networks' stockholders |
|
Diluted EPS attributable to AMC Networks' stockholders |
Reported Results (GAAP) |
$ |
159,231 |
|
$ |
(40,744 |
) |
|
$ |
(7,836 |
) |
|
$ |
110,651 |
|
$ |
2.55 |
Adjustments: |
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets |
|
10,214 |
|
|
(1,691 |
) |
|
|
(2,951 |
) |
|
|
5,572 |
|
|
0.12 |
Impairment and other charges |
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
Restructuring and other related charges |
|
754 |
|
|
(387 |
) |
|
|
25 |
|
|
|
392 |
|
|
0.01 |
Loss on extinguishment of debt |
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
Adjusted Results
(Non-GAAP) |
$ |
170,199 |
|
$ |
(42,822 |
) |
|
$ |
(10,762 |
) |
|
$ |
116,615 |
|
$ |
2.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMC NETWORKS
INC.SUPPLEMENTAL FINANCIAL DATA
(Dollars in thousands, except per share
amounts)(Unaudited)
Adjusted
Diluted Earnings Per Share |
|
Nine Months Ended September 30, 2022 |
|
Income from operations before income taxes |
|
Income tax expense |
|
Net income attributable to noncontrolling interests |
|
Net income attributable to AMC Networks' stockholders |
|
Diluted EPS attributable to AMC Networks' stockholders |
Reported Results (GAAP) |
$ |
393,564 |
|
$ |
(103,118 |
) |
|
$ |
(18,163 |
) |
|
$ |
272,283 |
|
$ |
6.23 |
Adjustments: |
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets |
|
31,195 |
|
|
(6,162 |
) |
|
|
(5,040 |
) |
|
|
19,993 |
|
|
0.46 |
Impairment and other charges |
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
Restructuring and other related charges |
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
Loss on extinguishment of debt |
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
Adjusted Results (Non-GAAP) |
$ |
424,759 |
|
$ |
(109,280 |
) |
|
$ |
(23,203 |
) |
|
$ |
292,276 |
|
$ |
6.69 |
|
Nine Months Ended September 30, 2021 |
|
Income from operations before income taxes |
|
Income tax expense |
|
Net income attributable to noncontrolling interests |
|
Net income attributable to AMC Networks' stockholders |
|
Diluted EPS attributable to AMC Networks' stockholders |
Reported Results (GAAP) |
$ |
333,790 |
|
$ |
(77,980 |
) |
|
$ |
(22,253 |
) |
|
$ |
233,557 |
|
$ |
5.39 |
Adjustments: |
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets |
|
29,077 |
|
|
(4,661 |
) |
|
|
(8,928 |
) |
|
|
15,488 |
|
|
0.35 |
Impairment and other charges |
|
158,973 |
|
|
(38,078 |
) |
|
|
— |
|
|
|
120,895 |
|
|
2.79 |
Restructuring and other related charges |
|
9,534 |
|
|
(1,419 |
) |
|
|
12 |
|
|
|
8,127 |
|
|
0.19 |
Loss on extinguishment of debt |
|
22,074 |
|
|
(5,257 |
) |
|
|
— |
|
|
|
16,817 |
|
|
0.39 |
Adjusted Results (Non-GAAP) |
$ |
553,448 |
|
$ |
(127,395 |
) |
|
$ |
(31,169 |
) |
|
$ |
394,884 |
|
$ |
9.11 |
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